BB Seguridade Participacoes (OTCMKTS:BBSEY – Get Free Report) and PRA Group (NASDAQ:PRAA – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.
Insider and Institutional Ownership
0.0% of BB Seguridade Participacoes shares are owned by institutional investors. Comparatively, 97.2% of PRA Group shares are owned by institutional investors. 2.0% of PRA Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares BB Seguridade Participacoes and PRA Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BB Seguridade Participacoes | $1.89 billion | 6.68 | $1.61 billion | $0.81 | 7.79 |
| PRA Group | $1.16 billion | 0.49 | $70.60 million | ($8.79) | -1.68 |
BB Seguridade Participacoes has higher revenue and earnings than PRA Group. PRA Group is trading at a lower price-to-earnings ratio than BB Seguridade Participacoes, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
BB Seguridade Participacoes has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, PRA Group has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for BB Seguridade Participacoes and PRA Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BB Seguridade Participacoes | 0 | 1 | 0 | 0 | 2.00 |
| PRA Group | 1 | 0 | 3 | 1 | 2.80 |
PRA Group has a consensus target price of $25.00, suggesting a potential upside of 69.61%. Given PRA Group’s stronger consensus rating and higher probable upside, analysts clearly believe PRA Group is more favorable than BB Seguridade Participacoes.
Profitability
This table compares BB Seguridade Participacoes and PRA Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BB Seguridade Participacoes | 87.16% | 84.08% | 43.34% |
| PRA Group | 8.10% | 6.52% | 1.64% |
Summary
BB Seguridade Participacoes beats PRA Group on 8 of the 15 factors compared between the two stocks.
About BB Seguridade Participacoes
BB Seguridade Participações S.A., through its subsidiaries operates in the insurance, pension plans, and bonds, businesses in Brazil. The company operates through Security and Brokerage segments. The Security segment offers life, property, rural, special risks and financial, transport, hulls, and housing people insurance products. It also offers pension plans, dental, and capitalization plans. The Brokerage segment engages in the brokerage, management, and promotion of pension plans, capitalization, capitalization, and dental plans. BB Seguridade Participações S.A. was incorporated in 2012 and is headquartered in Brasilia, Brazil. BB Seguridade Participações S.A. operates as a subsidiary of Banco do Brasil S.A.
About PRA Group
PRA Group, Inc., a financial and business services company, engages in the purchase, collection, and management of portfolios of nonperforming loans worldwide. It is involved in the purchase of accounts that are primarily the unpaid obligations of individuals owed to credit originators, which include banks and other types of consumer, retail, and auto finance companies. The company also acquires nonperforming loans, including Visa and MasterCard credit card accounts, private label and other credit card accounts, personal loans, automobile loans, and small business loans from banks, credit unions, consumer finance companies, retailers, utilities, automobile finance companies, and other credit originators. In addition, it provides fee-based services on class action claims recoveries. The company was formerly known as Portfolio Recovery Associates, Inc. and changed its name to PRA Group, Inc. in October 2014. PRA Group, Inc. was founded in 1996 and is headquartered in Norfolk, Virginia.
Receive News & Ratings for BB Seguridade Participacoes Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for BB Seguridade Participacoes and related companies with MarketBeat.com's FREE daily email newsletter.
